Naira-for-crude Policy Remains in Force, Says Technical Sub-Committee Chairman.

By Godson Ikoro

The Technical Sub- Committee on Naira -For – Crude Supply arrangement has vehemently refuted some Media reports , suggesting that policy framework enabling sale of crude oil in Naira for domestic refineries has been discontinued ; forcing them to rely solely on international crude purchases.

A statement from the sub-committee e-signed by its Chairman Zacch Adedeji, said “These reports do not reflect the realities of the ongoing work under the Federal Executive Council Initiative on Domestic Sales of Crude Oil and Refined Products in Naira.”

The committee , which is driving the implementation of this initiative, further debunked the false reports by providing an update on the Federal Executive Council initiative confirming categorically that the Naira-Based Domestic Sales Framework Remains in Place.

According to the Sub-committee
The policy framework enabling the sale of crude oil in naira for domestic refining remains in force.

It explained that the initiative was designed to ensure supply stability and optimize the utilisation of local refining capacity. Hence it stated without any equivocation that there has been no decision at the policy level to discontinue this approach nor is it being considered.
“:After implementing the policy for some months, evidence abounds that it is the right way to go and it will continue to help the economy.

The Sub committee reiterated that Local Refineries have not been excluded from domestic Crude Supply

“The engagement process for crude oil supply to domestic refineries therefore remains in place by structured agreements, balancing factors such as availability, demand, and market conditions; stressing that there is no exclusion of local refineries from access to domestic crude. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is actively ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act” ‘
The Initiative , it stated further supports competitive pricing and market efficiency”

The framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment.

While it maintained “that it will continue its work on strengthening implementation, the Sub-committee
“remain committed to ensuring the efficient execution of this initiative in line with its core objectives – enhancing local refining, reducing foreign exchange exposure, and stabilising the domestic fuel supply.”